The strong rise in US indices since late December has given many bears (including myself) a shock
but when one looks at the chart this rise makes some sense.
Often when a major support line is broken the index will bottom and then bounce back strongly to
the trend line which now forms resistance. DJI has done just this and is fast approaching the area
where a decision will occur.
My own best guess at the EW structure is that from the ATH in oct DJI is forming a leading diagonal
but of course there are other alternatives which will become clearer as time passes.
Note the strong momentum divergence and if DJI breaks the lower channel trendline this may signal the
start of wave 3 black down. Good Luck
but when one looks at the chart this rise makes some sense.
Often when a major support line is broken the index will bottom and then bounce back strongly to
the trend line which now forms resistance. DJI has done just this and is fast approaching the area
where a decision will occur.
My own best guess at the EW structure is that from the ATH in oct DJI is forming a leading diagonal
but of course there are other alternatives which will become clearer as time passes.
Note the strong momentum divergence and if DJI breaks the lower channel trendline this may signal the
start of wave 3 black down. Good Luck